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New Insights on the Decline of the Middle Class

In a recent working paper published by the National Bureau of Economic Research, Fatih Guvenen and his co-authors Greg Kaplan, Jae Song, and Justin Weidner, examine indiviudal labor income histories over six decades. They find that overall, substantial changes in labor market outcomes for younger workers are a critical driver of trends in both the level and inequality of lifetime income over the past 50 years.